Iraq PM admits “real deficit” in federal budget

Shafaq News/ On Monday, Iraq’s Prime Minister Mohammed Shia al-Sudani acknowledged that the federal budget is facing a “real deficit.”

Speaking during a meeting with the governor and members of Dhi Qar’s provincial council, al-Sudani stated that the current government has implemented spending mechanisms based on priorities, resulting in significant achievements across various sectors despite financial constraints.

“For the first time, we are seeing an actual budget deficit tied to performance and accomplishments, rather than a theoretical one,” al-Sudani stated.

He noted that in the 2024 federal budget, 156T IQD (about $120B)have already been spent out of a planned 213T IQD (about $163B). Of this, 90T IQD (about $69B) were allocated to salaries, 40T IQD ($30.5B) to operational expenses, and 13T IQD (about $10B) to development projects across ministries and provinces.

Iraq’s 2023 budget was set at 211T IQD (about $161B), with revenues estimated at 144.3T IQD (about $110B) and expenditures at 210.9T IQD (about $161B), resulting in a projected deficit of nearly 63.6T IQD ($48.5B).

Notably, the government has yet to submit the 2025 budget tables to parliament, prompting criticism from the Parliamentary Finance Committee, which described the delay as “unexplained.”